On June 3, 2020 Minister of State (IC) Power and New & Renewable Energy & Minister of State (Skill Development and Entrepreneurship), R. K. Singh launched pan-India Real Time Market(RTM) in electricity through video conference in New Delhi, which has positioned Indian electricity market in the league of few electricity markets in the world, which have a RTM.This will allow consumers to buy power just one hour before the delivery.
Gist about Real Time Market:
i.RTM is an organized market platform that enables buyers and sellers pan-India to meet their energy requirement closer to real time of operation
ii.The introduction of a RTM will bring the necessary flexibility in the market to provide real time balance & ensure optimal utilization of the available surplus capacity in the system.
iii.The real-time market went live at Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL).
iv.It is based on double sided closed auctions with uniform prices & will be for every 30 minutes & there will be 48 auction sessions in a day. The “Gate Closure” concept has been introduced to bring the desired firmness in schedules during the hours of market operation.
v.For each 15-minute time block Buyers/sellers will have the option of placing buy/sell bids.
vi.It will provide an alternate mechanism for Distribution Company(Discoms) to access larger markets at competitive prices & the generators will benefit by participating in the RTM with their forced capacity.
vii.A mechanism was provided for generators which have long-term contracts & participate in this market to share the net gains with the Discoms.
viii.Power System Operation Corporation Limited(POSOCO), a National Load Despatch facilitates necessary automation in coordination with power exchanges so as to ensure faster transactions and settlements in the RTM framework.
India’s target– India has set a 175 gigawatt (GW) Renewable Energy(RE) Capacity by 2022, which drives accelerated renewable penetration pan-India.
Benefits of Real time
i.Real time will help to manage diversity in the demand pattern in the country with an organized market at national level.
ii.It will help to ease challenges to the grid management due to intermittent and variable nature of renewable energy generation & so facilitate integration of higher quantum of renewable energy resources into the grid.
iii.The short bidding time, fast scheduling & defined processes (e.g. gate closure) are expected to enable the participants to access resources throughout the all India grid, promoting competition
iv.It will lead to better portfolio management by the utilities with efficient power procurement planning, scheduling, dispatch, and imbalance handling.
v.The Discom’s can manage their power purchase portfolio optimally and need not tie up excess capacity. As any last minute requirement of power can easily be bought from the RTM.
vi.It will lead to cost optimization of power purchase and serve the consumers with reliable supply. The previous regime of managing the grid by load shedding due last minute changes can be easily avoided.